IEDC seeks $50M in state support for new LEAP pipeline bond financing
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The Indiana Economic Development Corp. plans to ask the state for $50 million to support bonds to finance a new pipeline that would send 25 million gallons of water to its LEAP Lebanon Innovation District and other Boone County developments, supporting the Eli Lilly and Co. manufacturing complex expansion, additional park tenants and new development in the city.
If approved, the money would be transferred from the Deal Closing Fund to the Indiana Finance Authority to secure bond financing, according to a State Budget Committee agenda.
The budget committee is expected to decide on the request Thursday morning.
The finance authority took the first step last week toward financing a new Citizens Energy project that would channel 25 million gallons of water a day to the area, IBJ first reported Friday.
The potential project would serve as a water source to support the LEAP district, which is the IEDC’s major effort to draw giant tech manufacturing facilities to the state (LEAP stands for Limitless Exploration/Advanced Pace). The pipeline is expected to serve the needs of the park for the next 15 to 20 years, but the park would ultimately need additional water supplies to reach its projected scale.
The Citizens Energy proposal is a separate endeavor from the IEDC’s exploration of possibly pumping up to 100 million gallons of water per day through a 35-mile pipeline to the LEAP district from Wabash River aquifers near Lafayette. The Wabash pipeline is on pause while officials await the results of the IFA water study to be released later this year.
The Citizens Energy-Lebanon Utilities project is one of several water and wastewater improvement efforts around the state that could be funded through $500 million in bonds approved Thursday by the Indiana Finance Authority. James McGoff, chief operating officer and director of environmental programs at the Indiana Finance Authority, said the Lebanon project’s slice of financing could be upwards of $100 million.
While no additional authorization for the bonds is needed, financing for the Lebanon Utilities project would still need to be approved for funding through the State Revolving Fund Loan Program, finance authority officials told IBJ in an email.
The IEDC declined to comment on the water project and its new funding request, referring all questions to the state finance authority.
The IEDC has three other requests in front of the budget committee.
If approved, the Samsung SDI/Stellantis battery plant project in Kokomo nicknamed Project Fusion would receive $101 million of the $245 million promised by IEDC. The company is weighing a $5.9 billion investment and thus would receive a pricier-than-average performance incentive.
Economic deals that are announced don’t always come to fruition. Some projects are called off altogether or don’t result in the number of expected new jobs. The IEDC only pays out incentives when companies meet their job-creation and investment commitments.
Another request seeks $36 million to acquire about 1,850 acres of land within the LEAP District for three companies. The companies deal in advanced computing, information technology and biopharmaceutical manufacturing.
The money would go toward property acquisition, deposits and option payments. Once secured, the IEDC would then sell the land to the companies and return the sale cost back to the state’s general fund.
In June, the budget committee approved $59 million for the IEDC to acquire 1,400 additional acres and purchase 1,100 contracted acres for three companies with similar industry focuses as this Thursday’s request. It’s unclear if the requests are related to the same companies.
The agency also seeks $15 million for ongoing LEAP District infrastructure development, including roadwork, roundabout construction and utility installation for the park’s tenants. In June, $29 million was approved for similar district infrastructure improvements.
The IEDC did not return a request for comment for more information on the proposed Citizens pipeline, the $5.9 billion Howard County project and the three companies being prepped for in the LEAP District.
The IEDC did not provide further information on the three companies being prepped for in the LEAP District.